Marwicks Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,505 per unit and then sells them to retail customers for an average price of $2,500 each. The companys selling and administrative costs for a typical month are presented below:

Costs	Cost Formula
Selling:
Advertising	$	947 per month
Sales salaries and commissions	$	4,790 per month, plus 4% of sales
Delivery of pianos to customers	$	62 per piano sold
Utilities	$	666 per month
Depreciation of sales facilities	$	4,956 per month
Administrative:
Executive salaries	$	13,562 per month
Insurance	$	715 per month
Clerical	$	2,496 per month, plus $39 per piano sold
Depreciation of office equipment	$	895 per month

During August, Marwicks Pianos, Inc., sold and delivered 64 pianos.

Required:

2. Prepare a contribution format income statement for August. Show costs and revenues on both a total and a per unit basis down through contribution margin.

Contribution Format Income Statement For the Month of August Total Per Piano Variable expenses Total variable expenses Contribution margin Fixed expenses: Total fixed expenses